Up Almost 400% in 12 Months — Is NuScale Power (SMR) Stock Still a Buy in 2025?

Nuclear energy's comeback kid just posted staggering returns—but can the rally continue?

Small Modular Reactors: The Game Changer

NuScale's technology slashes construction costs and bypasses traditional nuclear's scalability problems. These compact reactors deliver clean energy without the decade-long timelines and budget overruns that plague conventional projects.

Market Momentum vs. Reality Check

While the stock surged nearly 400% in a year, Wall Street's enthusiasm sometimes feels more like speculative FOMO than fundamental analysis—because nothing says 'solid investment' like betting on unproven technology during an energy transition gold rush.

Regulatory Hurdles and Execution Risks

The company faces regulatory gauntlets and must demonstrate commercial viability at scale. Nuclear innovation moves slower than crypto traders' attention spans, but the payoff potential keeps investors hooked.

Verdict: High-Risk, High-Reward Play

NuScale either revolutionizes energy or becomes another cautionary tale in the clean tech graveyard—place your bets accordingly.

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The stock is also enjoying higher-than-normal trading activity among options traders, with over 57,700 contracts traded as of Tuesday. The majority of traders (75%) are bullish, betting on the company’s stock shooting up further.

The question then is: why is NuScale Power gaining this momentum?

Advanced Economies Race for Nuclear Energy Dominance

One key factor likely fueling the surge is the shift in nuclear policy in advanced economies. In late May, President Donald TRUMP signed four executive orders targeted at “reinvigorating” America’s nuclear industry, seeing as the nation’s “nuclear fuel cycle infrastructure has severely atrophied.”

The orders focus on promoting the rapid development and deployment of advanced nuclear technologies, including small modular reactors (SMRs), microreactors, and Generation IV reactors. The goal is to establish America’s energy dominance and energy independence in the future.

SMRs, also known as “mini nukes”, are NuScale Power’s area of expertise. They are small-sized nuclear reactors that can generate up to a third of the electricity produced by traditional large nuclear plants. They can be factory-built and transported to installation sites for assembly.

The UK wants in on SMRs to meet its growing electricity demands and has dedicated about £2.5 billion to that end. In June, the British government awarded industrial manufacturer Rolls-Royce (RYCEY) the contract to develop and build its first small nuclear power stations.

Already, NuScale Power has received the Standard Design Approval (SDA) for the upgraded version of its SMR that can produce 77 megawatts of electricity. SDA is a formal certification by the U.S. nuclear regulator that its reactor design meets safety and regulatory standards.

In addition, NuScale Power is set to benefit from the new deal between energy developer ENTRA1 and the Tennessee Valley Authority (TVA), a U.S. public utility. The former will use NuScale Power’s modules in designing up to six gigawatts of new nuclear energy capacity for the TVA. Banking giant UBS (UBS) has called the deal a major upside for NuScale Power.

Is NuScale a Good Stock to Buy?

On Wall Street, banking titans UBS (UBS) and the Bank of America (BAC) on Wednesday both gave SMR stock a Neutral rating, with the same price target of $38.

UBS acknowledged the potential of the new deal to attract reliable customer support and enhance the chances of commercializing the company’s design. However, the banker opted for caution as it waits for clarity on the terms of the deal.

Similarly, the Bank of America (BAC) attributed its rating to stagnant customer interest. The banker noted that “the defining question is whether SMRs can deliver competitive costs.” It added that credibility in the industry was shifting from design approvals to customer patronage and that “only a few developers are passing that test.”

On TipRanks, NuScale’s stock has a Moderate Buy consensus recommendation based on three Buys and seven Holds by 10 Wall Street analysts. The average SMR price target is $39.43, indicating a potential 6.72% downside risk.